Public Act 99-517 made changes to the statute regarding the furnishing of confidential taxpayer information to local governments. As a result of this legislative change, county governments are eligible to enter into a Reciprocal Agreement on Exchange of Information with the Illinois Department of Revenue effective June 30, 2016.
A Reciprocal Agreement on Exchange of Information (Agreement) is an agreement between a municipal or county government and the Illinois Department of Revenue (Department) to share financial information obtained pursuant to the Illinois Retailers’ Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, and the Service Use Tax Act on taxpayers doing business within their taxing jurisdiction.
As a result of the legislative change, the Department has made changes to the Agreement to include county governments. Due to the sensitive nature of this confidential taxpayer data, the Department has also added a new requirement to the Agreement. Each person authorized to request, view, or receive financial information will be required to complete and sign an Attachment B, Acknowledgement of Restrictions on Use and Disclosure of Confidential Financial Information. This document must be submitted to the Department along with the list of authorized persons. No financial information will be sent to the local government until signed agreements have been received for each person on the authorized list.
Due to the changes made, Agreements previously submitted by municipalities expired on December 31, 2016; therefore, municipalities are required to submit a new signed Reciprocal Agreement on Exchange of Information with the Department. If the Department does not receive the new agreement, your municipality will not be eligible to receive confidential information that is requested after December 31, 2016.
The updated agreement and additional information regarding how to enter into an Agreement with the Department can be found on the Illinois Department of Revenue’s website at http://tax.illinois.gov/LocalGovernment/ReciprocalAgreementOnInformationExchange.htm.
If you have any questions, please contact the Illinois Department of Revenue at the address and telephone number listed below.
Illinois Department of Revenue
Local Tax Allocation Division (3-500)
101 W. Jefferson St.
Springfield, IL 62702
(217) 524-0526 (fax)